tv Bulls and Bears FOX News May 24, 2014 7:00am-7:31am PDT
oh, come on! what are you guys eating? >> bye, everybody. we'll see you tomorrow. american's wallets getting grilled. everything you are putting in your grocery cart and on the grill, and even the propine to fire up the grill is way up. cranking up the a/c is going to cost you too, and the happiest place on earth is becoming the most expensive place on earth, too. i am in for brenda, and this is bulls and bears. welcome all our guests.
gary k, the government saying we don't have an inflation problem, yet we have all the price spikes, what is going on? >> they have butlers buying their food so they don't know what is going on in the real world, and they changed the calculation on it every time for it to be lower. you name it whether it's health insurance or food or gas, and it's only going to get worse now. even the department of agriculture came out in the last day and said look for sticker shock when you are buying your food. thanks for the news. >> we all know it's there. call it what you want. prices are going up and the wages are not. >> yeah, gary is right. these congress guys are clueless. i don't think that's a news flash to anybody out there. beef prices up 22%, and milk
prices up 36%, and the retail stores are eating the prices and it's going to manifest itself into the economy, and that's going to hurt your middle class and lower income people specifically. and gas prices are at an average that are historically very high. wage growth is stagnant right now and it's worst than what it looks like. even whisky is up 2.6%. if they get to beer, we have a real problem. >> dave or bill, you think it's not an inflation issue. how come? >> i see it as prices increasing, as everybody sees that. i don't think that we have warnings of inflation. i think it speaks to the strength of the economy. we have at least half the states, if not more, near full employment or under 6% unemployment. i think that shows a little demand coming in and with that you have price hikes. i think that speaks well of the
economy, and i do think that there's a problem in that wages aren't keeping up with prices and we need to think about raising the minimum wage -- >> i don't know, jonas, raising the minimum wage will not help that car prices and movie theater tickets are up. minimum wage has nothing to do that you can't take your kid to a ball game. >> it would raise prices even more with the labor cost. that's a separate issue. i am not against doing it, but it wouldn't be effective. the consumer now can afford to buy more meat and waste propane like that. we are using more energy and the prices are sticking. that was the goal. the feds wanted to generate a 2% inflation, because if it sticks it means the economy is strong.
ideally wages will grow faster, and that's the last piece of the puzzle, it should catch up and everything will be fine. >> but gary b., does that hold? i need gas in my car to go to work so i have no choice but to pay for it. >> i want to go back to the beginning. gary, he is in the conspiracy camp, like the government is lieuing. you know i am no fan of the government, and i think from the v.a. to social security and etc., etc., and i don't think the bureau statistics people that put together the numbers they have the black helicopter thing, like, oh, my, we are going to lie and get it to be down. and david, how you can spin this to say the economy is so strong,
that's mind-boggling. >> the economy is strengthening and we are getting unemployment down and employment up. >> you are talking crazy talk, all right? the thing that is happening here is, look, overall, i do agree with the government numbers. we have about 2% inflation because we don't spend our entire budget on food and gas, but i will say this, for those that don't remember, you know, back in the '70s when we did have hyperinflation, we had a lot of -- my gosh, 30 or 40 years of calmness, so the recent spikes we have seen -- i have even been pumping my own gas, yes, i do that, and i have seen the prices spike. to me, it looks like in the face of all the calmness, prices have spiked. i think we are on the cusp of serious inflation.
>> does it even -- maybe they are getting it right in the government, but is the equation wrong? we are still using the same equation to calculate this stuff. things have changed. i think they should put rec fees in the calculation. >> it's a known fact, and not an opinion, that they have changed their calculation -- hold on, for the last 30 years, and every time they changed their calculation on inflation is to make it look lower. >> why would they do that? what would be the reason for doing that? >> government likes to make themselves look better. you have inflation and everything going up. the only thing that has depl deflation.
>> the background in miami makes you look so fantastic. but what about the consumer at the end of the day? is it going to get worse for them. if prices go up and wages don't, that has to hurt. >> it hurts if it gets out of control, and they get way above 2% and wages don't go along for the ride. the game is over and prices are picking up and they have to stop creating money out of thin air. probably won't get 3%, and 4% and 5% over the years. prices going down is a sign of a economy, no, if you don't see prices going up every year something is wrong. no, i am not saying 8%, or 11% in a year, but you want 2% a year. the government does index your social security, and i will say there are independent priced things.
those mimic the cpr very well. it has nothing to do with government black helicopter price fixing. >> it's hard to feel like the numbers don't reflex the true state of how we are all doing? >> yeah, the main thing is to understand the different economies of our country. there are parts of the economy that are doing strong. this is 103% unemployment in north dakota, and in west texas, you can't find a home or place to stay. you don't need a minimum wage there because everybody is getting paid a lot of money, and that's because drilling, and that's what it comes down to, but in california the poverty rate doubled to 24%, and that's where you see the country hurting and the lowest labor participation rate, and why you have pockets that are very
prosperous to west texas to north dakota. that's where inflation kicks in and hurts the middle class and lower income people. >> thank you, guys. so you think protests are about fast-food workers? why the cavuto gang things the union is pulling a fast one on them. why are 300,000 federal workers getting away with not paying their taxes? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your confident retirement today.
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joined in together to read the names of the fallen, including casey and petraeus and many others. overseas, the pope celebrating mass at an outdoor stadium. visiting some of the most sacred sites in the holy hand and meeting with christian and jewish and christian leaders. now back to bulls and bears. federal workers make more than most of us make, and they still can't pay their taxes on time. they owe $3.3 billion in back taxes. is it time to do to them what they do to us? >> yes, if you don't pay your taxes in the real world you get your wages garnished.
there is 714 employs in the house and senate that are behind taxes and the federal courts are behind on taxes, and they should not be treated differently, and you are getting paid more, working for the federal government, pay your taxes. 1.7% of active military is behind. why do we have soldiers pay taxes anyway? we give them money and then ask for some of it back? >> in order to get the job, you should pay your taxes on time if you want to work at the irs. >> what a concept. i go with tom, and he says if you are not a federal worker and you don't pay your taxes, guess what? you are suspended without pay
until you are caught up. that's the best idea. that will give people off their rear ends and paying taxes and getting ahead of the game. >> gary b., if they collected all the taxes and everybody paid maybe they wouldn't spend more time talking about raising taxes because there would be more money in the coffers. >> we wouldn't need obamacare, it would be paid for, that's great news. the real pony is the rate in tkau ly delinquency,couple times, acros whether you are a priest in the military or a gardener attending to the state lawns, you get paid
higher than the civilian workforce. yeah, i think there is certainly an onus on there to garnish their wages, all of this stuff we all live in fear of, except for maybe jonas who kisses up to the irs every week. if you don't pay your taxes i am afraid my wages will be garnished. i am astonished. >> jonas, be honest, they should be treated the same way we do. >> but they are? why do we want to treat them worse? the hard working civil servants, why do we want to treat them worse? what is so bad about this? the government borrows, they charge you interest on the
amounts you owe. you don't get away from that, and you can't walk away from it either. they will garnish your wages. if more government workers were back paid, we would have lower deficits. >> david, come on now, this is logic. this is not what we should be encouraging, that people don't pay their taxes. >> we should not the be encouraging it, but jonas has a point that money is being made on the delinquent accounts. that said, i would say those that do not pay should lose their jobs, i think not. they go on the federal unemployment insurance or whatever else may be necessary to keep them moving. i think we should treat them like any other taxpayer that may be delinquent, set up payment
plans and garnish wages but let them keep their jobs so we can have them contributing in the future to the taxes and to the family welfare. >> what are they contributing to? they are promoting something that is putting us further into debt. i don't know if that's a good thing. >> and david seems like we can't live without the 9.8 federal workers out there. >> that's not what i said, gary. >> i know, i tried to spin it in my direction. >> you guys are great. >> well done. >> thank you. cyber hack attacks threatening our power grid, that some fear may be wiping out. >> is enough being done to get the whole story? our expert panel weighs in. memorial day weekend?
this is getting scary. the department of homeland security disclosing a public utility company was recently compromised by hackers, saying, quote, a sophisticated actor gained unauthorized access to the control system, and add that to the military-style attack on the substation in california last year. the growing threat to the power grid is a direct threat to our economy? >> tracy, i think it's the single biggest threat to our economy. if i was a terrorists, this is the area i would attack. that plan the in california that was attacked by terrorists with ak-47s, that took four weeks to repair. think about that on a big scale. just remember back, i know you
all, the new york panel went through hurricane sandy, and we went through something a few years ago, and think about when you lost power for a few days. your life was hell. think about if the whole east power grid went out, the economy would go out. the dow would drop 3,000 and 4,000 points in a few days. we would not be prepared. >> it's costly, too. we don't have the money to fix this stuff right now. >> yeah, and we can't find enough cyber technicians out there to hire to put on government payroll, because we are not getting tech engineers in the number that we need in our country. look what happened with the flame virus that took out the iranian nuclear reactor through cyber warfare. you look at the system of
encryption. to me, this is, i completely agree with gary b., this is the greatest threat our country faces. nobody is going to invade us, but one thing they can do is come after us cyber warfare wise, and this is the biggest threat. >> we don't have one main power grid. we have a bunch of old antiquated ones. >> we keep hearing about our infrastructure, and you may want to look at our grids. it staggers the imagination, the possibility of somebody can knock us out. the financial system, you name it. it's all bad news. gary b. is right, the market will take a hit. let's hope that we have fail-safes for the fail-safes for the fail-safes, but we are
all not sure about that. >> why do they care more about saving the turtles than the power grid. they are not paying attention to this. >> i think we have the infrastructure of falling bridges and the delapdated roads, and the energy infrastructure, and look, for 50 years, the last 50 years, it has increased by 10 fold but has not modernized. we are not advancing it to protect the security of that infrastructure. we need to invest in it now or we pay a lot more later. >> shouldn't this be priority number one, jonas? >> because ebay had a monster hack, but the homeland security was looking at budgeting, and these companies make money and
they can pay for their own hack security, and they want to sell you power, and they don't need the department of homeland security going in on their private area. >> but somebody has to, because they are going to hurt us soon. thank you, david, for joining us. >> have a good memorial day. before you hit the road, we will show you how to fill her up and fill your pockets, too. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protecon. and because usaa'commitment to serve current and former military members andheir families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.
>> struggling bear. >> jonas, what is your prediction? >> well, i can't use a tablet, doesn't have enough power, but the surface pro -- >> bull or bear? >> have a great weekend. neil is next. it's all about tps food workers or unions just pulling a fast one on. good to have you. i am neil cavuto. it's time to kick mcdonald's buns out of the headquarters. charles payne, unions goating them into this and what do they want out of this? >> there is a whole lot of contracts out there, a whole lot of different unions